Binance Embraces Regulation Following Record $4.3 Billion Settlement

Binance's $4.3 billion settlement with the United States last year marked a significant shift for the exchange, according to Catherine Chen, the head of institutional and VIPs. Speaking on an April 10 panel at Paris Blockchain Week moderated by Cointelegraph editor-at-large Kristina Cornèr, Chen described the settlement as a "turning page" for Binance, which is now welcoming the "coming wave of regulation."

As part of the settlement, Binance agreed to employ an independent compliance monitor for three years and to have a five-year U.S. Treasury monitor. Chen sees this as a positive development, stating, "It's frankly a great thing from my perspective."

Chen dismissed concerns about the monitoring agreement affecting Binance's performance, noting that the exchange had "been preparing for it."

"It is a challenge, but it's a welcome challenge, and we fully embrace it because we know that would be great for the market."

In November 2023, Binance, Binance.US, and co-founder Changpang "CZ" Zhao paid the U.S. government $4.3 billion to settle charges of violating Anti-Money Laundering (AML) and sanctions laws. Zhao agreed to step down as CEO and plead guilty to failing to maintain an AML program, facing up to 18 months in jail with his sentencing set for April 30.

Chen highlighted that having regulation in place "gives a lot more clarity" to Binance's users and "will help them be a lot more comfortable with the industry, with the asset class [and] with the key players."

"Although people see challenges for us, it's actually great. It's the best thing that can and should happen to the industry," she added.

Binance's new CEO, Richard Teng, told CNBC on April 9 that the company "was operating in a certain fashion," but it had "moved past that as the company moves into greater maturity."

In an on-stage interview at Paris Blockchain Week the same day, Teng said the exchange — famous for never having a formal headquarters under Zhao — was looking for a global HQ and was "speaking to a few jurisdictions."

The Securities and Exchange Commission is still pursuing charges against Binance, Binance.US, and Zhao, claiming they sold unregistered securities and commingled customer assets — allegations that Binance denies.